Answer the following review questions problems 2, 4, 5, 7, 8, and 12 in complete sentences and give an example and explain your answer.

Review Questions 1. What are the most frequently used sources of information for defining stan- dard food or beverage costs? 2. Is corrective action always necessary when actual costs are higher than stan- dard costs? Why or why not? 3. What is meant by the concept of "potential savings (profits)"? Why must potential savings (profits) resulting from corrective actions be considered before implementing corrective actions? 4. What questions should be asked when comparing variances between actual and standard costs? 5. How do unexplainable variances between standard and actual food costs occur? Between standard and actual beverage costs? 6. Is corrective action necessary when variances between standard and actual costs cannot be explained? Why or why not? 7. Why should a standard cost that is higher than an actual cost be of concern to management? 8. What are some objectives of corrective action procedures? 9. Who should managers involve in corrective action plans? 10. Why is it important to evaluate the effectiveness of corrective action plans? 11. How can technology be used to determine standard food costs? How will it help in calculating actual food costs? 12. What is the primary problem today that inhibits the opportunity to calculate actual food costs on a very frequent basis? Internet Sites Review Questions 1. What are the most frequently used sources of information for defining stan- dard food or beverage costs? 2. Is corrective action always necessary when actual costs are higher than stan- dard costs? Why or why not? 3. What is meant by the concept of "potential savings (profits)"? Why must potential savings (profits) resulting from corrective actions be considered before implementing corrective actions? 4. What questions should be asked when comparing variances between actual and standard costs? 5. How do unexplainable variances between standard and actual food costs occur? Between standard and actual beverage costs? 6. Is corrective action necessary when variances between standard and actual costs cannot be explained? Why or why not? 7. Why should a standard cost that is higher than an actual cost be of concern to management? 8. What are some objectives of corrective action procedures? 9. Who should managers involve in corrective action plans? 10. Why is it important to evaluate the effectiveness of corrective action plans? 11. How can technology be used to determine standard food costs? How will it help in calculating actual food costs? 12. What is the primary problem today that inhibits the opportunity to calculate actual food costs on a very frequent basis? Internet Sites